- Iron ore prices plunged significantly in 2021 due to subdued demand from the leading iron ore consumer of the world – China.
- The country is trying to squeeze its steel production to attain the environmental emission targets.
- Iron ore prices had surged in May 2021 due to strong demand from the Chinese steel industries.
Iron ore prices closed at US$159.92 per tonne on 25 August 2021, after plunging 0.09% from the previous close. The iron ore prices have dipped 7.57% in the current year on concerns of subdued demand from China. The country consumes more than half of the world’s iron ore for the manufacturing of steel. The prices for iron ore cargoes with a 63.5% iron content traded at USD150 per tonne.
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The prices started falling in August after witnessing a solid rally. China’s move to cut steel production to meet the environmental emission targets has dampened the demand for the world's second-largest traded commodity.
Also, speculation on China squeezing steel output to 2020 levels has led to a fall in demand. The official data suggests that steel output in July was 8.4% down relative to the previous year, recording the first monthly decline in 2021 from 2020 levels.
Related Article: Why are iron ore prices volatile of late?
On that note, let’s have a look at seven ASX-listed iron ore stocks and their YTD returns.
Source: ASX as of 25 August 2021
Headquartered in Western Australia’s West Leederville, Fe Limited (ASX:FEL) is an iron ore explorer. The company is engaged in the country's near term and high-grade projects, including the Yarram iron ore project.
The company is trading 16.129% up at AU$0.072 on 26 August 2021 (3:07 PM AEST).
Must Watch: How to pick good iron ore stocks?
BCI Minerals Limited
BCI Minerals Limited (ASX:BCI) has its headquarters in Perth, Australia. BCI is engaged in developing its fully owned Mardie Salt & Potash Project located on the coast of West Pilbara. The company recently got approval for the project from the Western Australian Environmental Protection Authority.
The company is trading 2.151% down at AU$0.455 on 26 August 2021 (3:07 PM AEST).
Grange Resources Limited
With its head office in Tasmania, Grange Resources Limited (ASX:GRR) is an iron ore exploration company. GRR key projects include the Savage River iron ore mine along with the Port Latta pellet plant. The company has its presence in Australia and Malaysia.
The company is trading 1.551% down at AU$0.635 on 26 August 2021 (3:07 PM AEST).
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Mineral Resources Limited
Mineral Resources Limited (ASX:MIN) has its headquarters in Perth, Australia. The multi-commodity miner has various projects located in Western Australia. The miner last quarter shipments were 27% higher. MIN has produced 19,466wmt iron ore in the last financial year.
The company is trading 0.983% down at AU$53.390 on 26 August 2021 (3:07 PM AEST).
Rio Tinto Limited
Rio Tinto Limited (ASX:RIO) is one of the leading mining companies of the world with significant interests in the development and production of iron ore, copper, petroleum, etc. The mining behemoth shipped 154.1Mt iron ore amid strong demand from China's steel industries in the last half-year.
The company is trading 1.687% down at AU$109.040 on 26 August 2021 (3:07 PM AEST).
Related Article: How could the red-hot iron ore rally benefit investors?
BHP Group Limited
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With its head office in Melbourne, Australia, BHP Group Limited (ASX:BHP) is a world-renowned mining company. The company has iron ore, copper, uranium, and crude oil projects across Australia and other parts of the world. BHP recently announced the merger of its petroleum business with Woodside Petroleum (ASX:WPL).
The company is trading 0.770% down at AU$45.130 on 26 August 2021 (3:07 PM AEST).
Red Hill Iron Limited
Incorporated in 2005, Red Hill Iron Limited (ASX:RHI) is an Australian iron ore exploration company engaged in developing its fully owned Pannawonica Iron Ore Project. The miner has recently agreed to sell its interest in Red Hill Iron Ore Joint Venture to Mineral Resources Limited (ASX:MIN).
The company is trading 2.094% up at AU$3.900 on 26 August 2021 (3:07 PM AEST).